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Wednesday, May 14, 2008

When HP acquires EDS

Well the Blogs are buzzing!

Some Snippets

Blogger 1 The Eagle Blog says
" Employees at both companies will be worrying about their future, but I would suggest the future is very bright for anyone with good skills. Both companies run lean shops, with everyone working hard today and that is unlikely to change. There may be a little rationalization in non-core functions, but I think it will be minimal and in a time when skills shortage are becoming more and more topical, good people will always have a job. "

Blogger 2 Says (het top 5 thoughts)
" One. HP needs more significant help on services and consulting.
Two. Synergy looks good between HP and EDS.
Three. Keeping services partners happy will be a challenge.
Four. What about the mainframe business?
Five. Will HP know how to leverage EDS's expertise to enhance the software business? "

Let us look at the news channels
ABC News says Sale to HP will end EDS independence
HP Stock Falls 6.5% After Spending $13.9BN to Acquire EDS
HP to acquire EDS for $13.9 billion

IS THIS THE BLACK SWAN OF YEAR 2008!

Let us see whether this was predicted in december 2007 by any of the modern day crystal ball gazers. In this blog were posted following predictions posts
http://innovationcrafting.blogspot.com/2007/12/trends-of-predicting-new-year-trends.html
(McKinsey and Gartner Missed this)
http://innovationcrafting.blogspot.com/2007/12/predicting-2008-blackswans.html
(Others too missed this!)
Business-week predictions (McKinsey will buy Ideo)
http://innovationcrafting.blogspot.com/2007/12/innovation-2008.html

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Implications for Indian IT

1. We will see more of such M&As - actually this is good for Indian IT as the two monolithic amoebas (as per a metaphor given by Rajeev Gupta) (HP and EDS) will try to become a big amoeba - for next many years to come. TCS, Wipro, Infosys - should be happy - as the competition will have to resolve many of its inherent issues. There is likely to many clients coming to Indian IT companies!

2. One of Indian IT companies may be a target for Microsoft for getting in a big way into IT services - most likely Infosys will be looked at by Microsoft - especially after its failure to get Yahoo.

3. Tier II and Below companies will be washed off from India by 2011 unless they really really create strong Niches not - have people based skills alone!

We are in for Interesting times!





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